Florida TaxWatch (FTW) released a study on Tuesday analyzing the importance and influence of supply chains in today’s economy.
The report, Supply Chain Resiliency in the Face of Economic Disruption: Connex Florida as a Platform for Resilience, highlights the impact that major disruptions – like the unprecedented global pandemic – can have, while also presenting Connex Florida as a practical solution to supply chain resiliency going forward. The nonprofit government watchdog noted in the report that such disruptions, like the kind brought on by the COVID-19 pandemic, can have a cascading effect on Florida’s economy, leading to financial losses that erase half a year’s worth of profits, on average, over ten years.
“COVID-19 led to widespread economic shocks, including manufacturing shortages, production inefficiencies, and distribution channel delays. During the early stages, over 70 percent of supply chain leaders encountered shortages in their supplier base, and 75 percent experienced issues in production and distribution, said Florida TaxWatch President and CEO Dominic M. Calabro his made the value of supply chains readily apparent to consumers and taxpayers across the state, the nation, and the world, resulting in a renewed sense of urgency to establish resiliency. Florida TaxWatch believes that Connex Florida’s ability to facilitate collaboration and connectivity is essential to accomplishing that goal.”
Connex Florida is the result of a collective partnership between FloridaMakes, The Associated Industries of Florida (AIF), and Space Florida. The online database is designed to help manufacturers better connect with prospective suppliers and develop business opportunities. It promotes supplier diversity within Florida and, more broadly, provides business leaders and policymakers with a unique opportunity to mitigate potential risk from both present and future crises. Currently, approximately 8,900 of the state’s more than 21,000 manufacturers are users in the system.
“Connex will provide manufacturers a way to pivot to an alternate supply chain rather than having to start from scratch as supply chain disruptions occur. With the amount of small manufacturers established around the state, it is vital for supply chains to remain open for these manufacturers to continue producing their products for their families and the State of Florida,” said State Senator Tom Wright, who also serves as Chair of the Florida Manufacturing and Supply Chain Caucus.
AIF President and CEO Tom Feeney added, “The Connex Florida platform provides manufacturers with Florida operations more, cheaper and better options to improve their supply chain, provide them resiliency during disasters, find new customers for their products and repurpose their capabilities to adjust to market demands. It is an indispensable tool to modernize supply chains and grow Florida’s manufacturing economy.”
Please click here for more information and to read the full report.